The Bay Al-Salam structure is most suited for following activities except: Select one: A

1. Bai al-salam refers to the arrangement where the payment is made in advance for the goods that will be delivered at a future date. In the current question the above concept cannnot be applied to construction because it involves huge cost and it is financed using loans. Hence it is not feasible to pay in advance as the interest for the period between and the payment and the construction will be accrued. The payment is done in parts and ot in advance. Hence the answer is option C.

2. Takaful is an islamic insurance wherein the participants pool a sum of mioney in prder to help each other. As per the islamic law one is not allowed to profit from this arrangement however the modern scholars allow to reinsure from conventional reinsurance only fo rthe process of hedging the risk. The correct answer is option A.